After the Delhi government announced a five per cent VAT on CNG in its 2012-13 budget,transport unions said the proposal,if passed,might lead to a hike in fares of auto-rickshaws and cabs in the city.
The price of CNG will increase by Rs 1.77 per kg to Rs 37.22 per kg if the tax is imposed. No VAT was levied on CNG used in transport sector until now. We have decided to levy a five per cent VAT. Other states like Haryana have imposed such a tax, Dikshit said.
Meanwhile,Rajinder Soni,vice-president of Bharitya Mazdoor Sangh,said auto and cab unions will go on strike to protest the tax on May 31. The government keeps increasing CNG prices without any thought for the common man. If the government passes this proposal,we will be forced to hike fares. We will go on strike on May 31, said Soni.
The transport sector overall,however,got Rs 3,372 crore (22 per cent) in Delhi budgets sector-wise plan outlay.
The CM proposed purchase of 600 more low-floor buses to replace old DTC buses. She said,DTC has 2,000 old buses. We will replace these in phases and replace all Blueline buses with the Corporate Sector Bus Operator System (cluster buses).
The first Mono Rail Corridor Project in the Trans-Yamuna area was also proposed in the budget. The development of Outer Ring Road as a signal-free road was also announced at a cost of Rs 2,400 crore.
Dikshit said the MCD would not maintain its road network and the government had taken over 512 roads with a width of over 60 feet. Now the PWD will maintain all such roads. Rs 250 crore has been allotted for these in the current financial year, she said.